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28 March 2024

Dispelling myths surrounding cost of sustainability

LG's green home appliance range has been well received in the region getty. (GETTY IMAGES)

Published
By Nancy Sudheer

In today's challenging business conditions technology companies are finding it tough to convince customers to invest in green solutions.

Technology and consumer electronics company LG has launched a whole range of consumer and enterprise solutions targeting eco-friendly customers. In this interview Ki Wan Kim, CEO of LG Electronics MEA, tells Emirates Business about the company's focus on green solutions and the interest shown by enterprises in the region.


Enterprises and governments in the Middle East often talk about going green, but how much action is being taken?

We saw at the Life's Green conference last year how governments and enterprises are adopting the sustainability message to differing degrees. Our experience is that the region, for one reason or another, is slow to pick up many concepts that are implemented internationally. Take recycling, for example. There is a need for enterprises or public-private partnerships to invest in recycling facilities for this region to achieve parity with other more developed markets and reduce the requirement for landfill sites. The Life's Green conference is all about tabling difficult issues across the public and private sector to look at what we can all do to make our lifestyles more sustainable.

Do you think there is enough awareness of the importance of sustainability among businesses in the region?

There is certainly awareness of the need for sustainable practices, but there is a low level of commitment in the boardroom. This can be due to a misperception of the cost implications or the lack of someone to lead sustainability programmes. Our conference this year will focus on dispelling some of the myths surrounding the adoption of sustainable business practices and aims to prove that sustainability can benefit the bottom line.

Are environmental factors considered when developing business models?

Factoring the environment into business modelling is challenging. Unless someone within the organisation understands how this is achieved it will be neglected. LG's conference will have case studies and presentations, which will help delegates understand how sustainability can be factored into business models.

Do you think businesses are adopting the going green message only to maintain a good reputation for corporate social responsibility (CSR)?

In some cases the intentions are good and if there is an internal champion to oversee and drive the programme, then it can be a very successful part of CSR. Good intentions can suffer, though, when a company faces unique challenges like the global financial crisis and unfortunately these programmes can be shelved.

LG has been pushing green solutions. How much uptake has there been in the region?

We consider it as less of a push and more of a change in product philosophy. We realised we had an opportunity to change our product strategy and look into ways of manufacturing products using more energy-efficient production processes as well as making the products more energy efficient. Our green home appliance range has been received extremely well in the region and are looking forward to bringing more green products.

When you design products how much priority is given to this approach?

Our investment in research and development proved that alongside the positive impact on society, the proposed changes will also produce significant cost savings for LG. Our corporate directive is now to place sustainability at the forefront of the design, development and manufacture of LG products.

How much of a challenge is it for you to convince consumers and enterprises to take up environment-friendly products and solutions?

This varies around the world and an increasing understanding of why we need to be more energy efficient is a challenge in the Middle East. Energy costs here for many people are relatively cheap but there is less education about the importance of saving energy and caring for the environment. We have to consider that a key message used for a while now is that everyone can help. While this is true, there is little understanding of why people should change their lifestyles or the way they work. The more we can work together – the public sector, private sector and individuals – to drive the message that it is our responsibility to leave behind a sustainable environment for future generations the better it is for all of us.

Have you seen consumers adopting green solutions during recession?

Consumers who are buying do consider products that are more energy efficient. The impetus came more from long-term cost implications than a wish to go green. We have tremendous opportunities right now to educate consumers and inform them that while energy-efficient solutions are going to cost less to run, they are a responsible purchase, too.

How does the consumer benefit from all this?

Savings on running costs are the most significant direct benefit to consumers. But we want to push the indirect benefit too, that energy-efficient products help reduce emissions, use less water, use fewer harmful consumables and ultimately help the environment.

Is it more expensive for a consumer or enterprise to buy green products?

No. And if anyone wants to know how this is possible they are more than welcome to join us on October 3 at the Life's Green conference.


Life's Green Conference

The LG Life's Green Conference 2009 will be held on October 3, 2009 at the Cultural and Scientific Association, Al Mamzar, Dubai from 8.30am – 6.30pm and attendance is free. Anyone wishing to attend the event can register by phone, fax or e-mail at the details provided below.

Name tags will be available for collection on the day at the arrival reception

Registration details:

Phone: +971 43179444

Fax: +97143372233


E-mail: lg@news4gulf.com

 

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